Philippine stock prices rebound

MANILA, Philippines—Local stock prices opened vigorously on the Philippine Stock Exchange after a long weekend break on Tuesday, climbing back to the crucial 4,200 level as global markets cheered a prospective resolution of the fiscal crisis in Greece.

The main-share Philippine Stock Exchange index added 58.70 points or 1.41 percent to finish at 4,211.81.

The index ended 2010 at around 4,200, which means that whenever the PSEi is trading higher than this level, local stocks are said to be better off this year.

Dealers said local investors took heart from upbeat trading on Wall Street in the last two days, especially as the local market wasn’t able to ride on the improved sentiment due to a holiday break on Monday in celebration of the 150th birth anniversary of Philippine national hero Jose Rizal.

“US stocks have been going up in the last two sessions and even closing in European markets suggested a rebound.  It seems that hopes are rising that the fiscal crisis in Greece will come to an end,” said Joseph Roxas, president of local stock brokerage Eagle Equities Inc.

The day’s upswing was led by services and financial counters which rose by 3.87 percent and 1.7 percent, respectively.  Only the financial counter traded in the red.

Turnover was heavy at P8.2 billion, which included a block sale on AEV.

Despite the overall index gain, however, advancers (63) were slightly edged out by decliners (67), which indicated selective buying.

PLDT led the index higher alongside AEV, AGI, EDC, Megaworld, Banco de Oro, BPI, Jollibee, Philex Mining, RLC and FPH. San Miguel Corp. and Atlas Mining were likewise up in heavy trade.

On the other hand, the decline by SM Investments and Aboitiz Power tempered the PSEi’s rise.

Semirara Mining was likewise traded lower.

Overnight, the closely watched Dow Jones Industrial Index rose by 76.02 points or 0.63 percent to 12,080.38.